‘Businesses should be required to publish their income statement on replacement cost lines and their balance sheet on net realizable value lines.’ Discuss.

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Figure 16.17 HC accounts for Q for 20X8 Balance sheet 31.12.X7 31.12.X8 000 000 Fixed assets: Cost (purchased 1.1.x5) 500 500 less depreciation 300 400 200 100 Current assets: Inventory (purchased 31 October) 100 150 Debtors 200 300 Bank 150 350 450 800 less Current liabilities Creditors 300 400 150 400 350 500 Share capital 100 100 Reserves 250 400 350 500